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Business January 2, 2023

Meta Platforms Inc. Sheds More Than 60% in Value Amid Declining Metaverse Market

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Meta Platforms Inc. Sheds More than 60% in Value amid Declining Metaverse Market
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Meta Platforms Inc., the parent company behind Facebook, Instagram, Messenger, WhatsApp, Meta Quest, Workplace, Mapillary, and Horizon Worlds lost more than 60% of its valuation in 2022, TradingView data showed. 

The plunge in market valuation has reduced METAs capitalization by over $500 billion from approximately $936 billion on Jan. 1, 2022, to around $392 billion on Dec. 30, 2022. Much of the decline was attributed to the company’s metaverse project by Reality Labs which saw $9.4 billion in losses from January to September 2022.

Also read: EU Commission Warns Meta Over Facebook Marketplace Antitrust Breach 

Meta Platforms was named along with Tencent, ZQGame, Nvidi, miHoYo, Lilith, NetEase, ByteDance, Epic Games, Unity, Microsoft, and Roblox as the key players that will contribute to the growth of the metaverse market to around $825 billion by 2030 at a compound annual growth rate of 39.1%.

Meta Platforms Inc. Sheds More Than 60% in Value Amid Declining Metaverse Market

Seeing a significant tumble in META stock is a cause for concern since the company’s applications play an essential role in the mobile and desktop metaverse (metaverse market by product type).

Aside from that, Meta Platform’s applications are integral in the gaming, social, conference, content creation, and online shopping (metaverse market by applications), and are used worldwide from the United States and Canada in North America to the Middle East, Africa, and Latin America.

Obsession has caused harm

Many stakeholders have credited the declining numbers of Meta to putting too much focus on emerging sectors. Among them is Art Shaikh, the founder and CEO of Circleit who told MetaNews that, “the obsession with the (metaverse) project has done tremendous harm to the brand.”

Despite the negatives, Meta has made some positive announcements in the last 18 months. In October 2021 when its market cap was above $1 trillion, Facebook announced that it will be hiring 10,000 workers in the European Union to work on its Metaverse.

In May 2022, Meta allowed a small number of collectors and creators to share their digital collectibles on Instagram.

This signalled the company’s embrace of non-fungible tokens (NFTs) – another sector made possible by blockchain technology which has generated more than $40 billion in all-time sales.

Three months after zooming into digital collectibles, the company announced in August that it supports wallet connections with Coinbase Wallet, Rainbow Wallet, MetaMask, and Trust Wallet.

With these wallets, Instagram users can post popular NFTs minted on the Flow blockchain by Dapper Labs, the development team behind NFT projects such as CryptoKitties, UFC Strike, NBA Top Shots, and NFL ALL DAY.

Towards the end of the month, Meta enabled owners of NFTs to share their digital art on Facebook in addition to Instagram.

NFTs on Instagram

In November, the company announced that creators of NFTs will soon be able to make their own digital art using upgraded features on Instagram where collectibles could be sold to fans on the platform.

Since NFTs cannot be created without blockchain technologies, Meta partnered with Polygon, Solana, and Phantom Wallet to facilitate this process.

META is not the only metaverse stock that was hit hard by the bearish market of 2022. Coinbase Global Inc. (COIN) also lost 86% of its market value throughout 2022. COIN opened on Jan. 3, 2022, at $256.27. Coinbase launched its NFT marketplace to the public in May.

Meta Platforms Inc. Sheds More Than 60% in Value Amid Declining Metaverse Market

Source: TradingView

Gaming is an essential part of the Metaverse and Roblox is a key player in the development of this growing sector.

Unfortunately, RBLX, the stock of Roblox, a game creation and online game platform shed 72% of its market value in 2022 from $101.91 on its opening day to $28.46 on the day of its close.

The Ethereum-based marketplace disappointed and could not see the same amount of revenue as other platforms such as OpenSea, Rarible, Magic Eden, and X2Y2 in the last seven months of the year. After reaching the year’s peak of $261.63 on its opening day in 2022, COIN closed the year on Dec. 30 with a price of $35.39.

Image credits: Shutterstock, CC images, Midjourney.


Quest 3 Headset Will Have Better Mixed Reality Tech



Quest 3 Headset Will Have Better Mixed Reality Tech, says Zuckerberg
Artist's rendering.

Meta, keen to be a Metaverse giant, plans to launch virtual reality headset Quest 3 later this year, with better mixed reality technology, said CEO Mark Zuckerberg.

Meta confirmed that the release should be called Meta Quest 3. It’s expected to cost between US$300 and US$500, which is about a third of the Quest Pro (the Quest Pro is currently priced at $1,499.99).

Also read: Meta Employees Undermine Zuckerberg’s Metaverse Strategy

The new headset will provide support for Meta Reality, which is technology that enables virtual reality headsets to also be used for augmented reality. This technology allows devices to create mixed reality experiences.

Meta Reality in Next-Gen Consumer Headset

The mixed reality ecosystem is relatively new, but Zuckerberg thinks it’s going to grow a lot in the next few years.

“Later this year, we’re going to launch our next generation consumer headset, which will feature Meta Reality as well, and I expect that this is going to establish this technology as the baseline for all headsets going forward, and eventually of course for AR glasses as well,” said Zuckerberg.

Beyond MR, the broader VR ecosystem continues growing. There are now over 200 apps on Meta’s VR devices that have made more than $1 million in revenue, Zuckerberg said.

How Meta Reality will look in more affordable headsets is yet to be clear.

Meta’s Reported Win over FTC will be Crucial

Meta has reportedly won court approval earlier this week to acquire VR fitness app Supernatural’s maker, Within, which will be a huge boost for Zuckerberg’s ambitious metaverse project.

Meta’s plan was to acquire Within and Supernatural back in October 2021, but it was blocked by the FTC’s complaint file to stop the deal. The FTC’s complaint was justified by saying Meta already owns a “virtual reality empire.”

Zuckerberg’s Meta Quest 2 is arguably the best VR headset, even after a massive hike in its price last year.

“There is a lot of work there that we haven’t actually shipped the product yet. VR, which is starting to ramp, right, Quest 2, I think, did quite well. We have multiple product lines there with the Quest Pro,” said Zuckerberg about Quest 3.

When Meta shipped Quest Pro at the end of last year, it was something their CEO was “really proud of” and believed it was the first mainstream mixed reality device to set the standard for the industry with Meta Reality.

“As always, the reason why we’re focused on building these platforms is to deliver better social experiences than what’s possible today on phones,” said Zuckerberg.

The possible benefit could be expected in Quest 3 through the acquisition of Within.


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Microsoft Warns Employees Not to Share Sensitive Data with ChatGPT



Microsoft Warns Employees Not to Share Sensitive Data with ChatGPT

Microsoft has warned its employees not to share sensitive data with an artificially intelligent (AI) chatbot, ChatGPT from OpenAI. Employees of American multinational tech giants had asked in an internal forum whether ChatGPT or any other AI tools from OpenAI were appropriate to use at their work, Business Insider reported.

Also read: 30% of College Students Use ChatGPT

In response to that inquiry, a senior engineer from Microsoft’s CTO office allowed to use ChatGPT but couldn’t share confidential information with the AI chatbot.

“Please don’t send sensitive data to an OpenAI endpoint, as they may use it for training future models,” the senior engineer wrote in an internal post, per Insider.

ChatGPT, here only for two months, is already raising concerns in the academic sector. Microsoft has become a partner of OpenAI, the parent company of ChatGPT, and has confirmed an investment of ten billion dollars.

Microsoft is planning to integrate OpenAI’s technology into its products, including the Bing search engine and other software, to enhance their capabilities, as reported previously.

The major concern of Microsoft regarding “sensitive information” may include sharing internal software code and seeking checks and advice from the chatbot.

Amazon’s Same Concern

ChatGPT has continuously made headlines since its launch last November but has also faced bans, especially in the academic sector as it became the cheating partner for students’ schoolwork. Recently, the tech giants have also raised their concerns over its use.

Amazon warned its employees to beware of ChatGPT last week, as reported by Insider. Insider claims that an Amazon lawyer has urged employees not to share code with ChatGPT via an internal communication form.

“This is important because your inputs may be used as training data for a further iteration of ChatGPT, and we wouldn’t want its output to include or resemble our confidential information (and I’ve already seen instances where its output closely matches existing material),” the lawyer wrote.

The lawyer placed more emphasis on requesting that employees not share “any Amazon confidential information” (including Amazon code they are working on) with ChatGPT via Slack.

Personal Data Concern

As concerns about data privacy grow among large corporations, an OpenAI representative has directed questions about the company’s data and privacy policy to ChatGPT’s FAQ page. The terms of service of OpenAI grant the company the right to use all input and output generated by ChatGPT users, with the stipulation that personally identifiable information (PII) is removed from the used data.

However, it’s quite impossible for OpenAI to identify and remove all the personal information from the data provided to ChatGPT, says Emily Bender, who teaches computational linguistics at the University of Washington.

“OpenAI is far from transparent about how they use the data, but if it’s being folded into training data, I would expect corporations to wonder: After a few months of widespread use of ChatGPT, will it become possible to extract private corporate information with cleverly crafted prompts?” said Bender.

Vincent Conitzer, a computer science professor and director of an AI lab at Carnegie Mellon University, said, “All of us together are going to have to figure out what should be expected of everyone in these situations. Is the responsibility on employees to not share sensitive information, or is the responsibility on OpenAI to use information carefully, or some combination?”

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China Catches Up On Quantum Computers, Makes 1st Delivery



China Catches Up On Quantum Computers, Makes 1st Delivery

China has officially caught up with Canada and USA in the race to deliver a complete quantum computer system to a customer according to a state media report.

Chinese quantum computing company, Origin Quantum Computing Technology developed a 24-qubit Wuyuan system before delivery to an unknown user more than a year ago, the science ministry’s Science and Technology Daily reported.

Also read: How AI Can Accelerate Metaverse Development

According to Origin Quantum, they are the only Chinese company in the quantum computing industry that can deliver real quantum computers as well as full-stack development and follow up services.

According to a statement sent to the Global Times on Monday by East China’s Anhui Province based Quantum Computing Research Centre, the group developed the computer and successfully delivered it to a user.

“More than 100 quantum computing companies in the world have put enormous investment into quantum research and development. Canada’s quantum computing company sold its first quantum computer in 2011, followed by IBM of the US in 2019.

“Chinese Origin Quantum delivered a quantum computer in 2021,” Zhang Hui, director of the Anhui Quantum Computing Engineering Research Center was quoted as saying.

Eyebrow raising announcement

The announcement by Chinese state media has raised eyebrows among skeptics questioning its timing.

Weifeng Zhong, a senior research fellow at the Mercatus Center of George Mason University in Fairfax, Va told TechNewsWorld that this could be a gimmick to just show China as a tech giant with a transparent administration.

“Quantum technology has a high priority for national security in China. If this were something very important, I doubt it would be disclosed like this in a transparent way by Chinese authorities,” explained Zhong.

“The fact that it was delayed for a year suggests that they realize now that it’s not important to national security, so they’re trying to use it to build China’s image as a technology leader at a time when they’re trying to open up their economy to the rest of the world,” added Zhong.

But what is quantum computing?

A quantum computer is a type of computer that uses quantum mechanics to store and process data, as opposed to classical computers that use classical mechanics. Quantum computers use quantum bits (qubits), which can exist in multiple states at once, to perform computations that are not possible on classical computers, making them particularly well-suited for certain types of complex calculations.

The  24-qubit Wuyuan quantum computer based on superconducting technology developed by the same company  becomes the third to be delivered to customers after Canada in 2011 and USA’s IBM in 2019.

Superconducting technology is currently one of the most mature and well-developed implementations of quantum computing, and many companies and research organizations are working to develop and commercialize superconducting quantum computers. Superconducting technology is one of the main implementations of quantum computing.

In superconducting quantum computers, quantum bits (qubits) are made from tiny electrical circuits that are cooled to very low temperatures, close to absolute zero, in order to minimize the amount of thermal energy and increase their coherence time, which is the time during which a qubit can maintain its quantum state.

What does China offer in its quantum computers

Speed: Quantum computers can perform certain operations much faster than classical computers, which can greatly speed up complex computations.

Parallel processing: Quantum computers can perform multiple calculations simultaneously, which allows for more efficient processing of large amounts of data.

Simulating complex systems: Quantum computers can be used to simulate complex systems, such as molecules and materials, which can lead to new discoveries in fields such as chemistry and materials science.

Cryptography: Quantum computers can be used to break certain encryption algorithms, which makes them useful for developing new, more secure encryption methods.

Optimization problems: Quantum computers can be used to solve complex optimization problems, such as logistics and scheduling problems, which have many potential real-world applications.

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